§ Mr. Proctorasked the Minister for Trade when the Monopolies and Mergers Commission report on the supply of trading check services is to be published; and if he will make a statement.
§ Dr. Vaughan[pursuant to the reply, 10 December 1981, c. 445.]: I am now able to give the House further information pursuant to the statement by my right hon. Friend the Member for Gloucester (Mrs. Oppenheim) on 10 December 1981 when the Monopolies and Mergers Commission's report was published. In its report the commission concluded that the practice of Provident Financial Group companies of continuing to include in their agreements with retailers, other than "scheme operators," a restriction on dealings with other suppliers of reference services, operated against the public interest. The Commission argued that although Provident might not actively enforce the restriction it might be regarded by retailers in whose agreements it appears as still binding upon them and so have the effect of leading them to restrict their use of the services of other suppliers of trading check franchise services and reduce competition in the supply of these services.
On 11 March the Secretary of State for Trade received and accepted undertakings from Provident Financial Group plc in the following terms:
Provident Financial Group plc undertakes to the Secretary of State for Trade:1 To procure that none of its subsidiary companies will enter into any agreement for the supply of trading check services to a retailer (other than an agreement of the type described below) which contains a provision restricting that retailer from acquiring such services other than from Provident or any subsidiary company of Provident.2 To notify any retailer who is party to an existing agreement with Provident, or any subsidiary company of Provident for the supply of trading check services, that Provident or any subsidiary company of Provident will not enforce that part of that agreement which comprises a restrictive provision as is described in undertaking 1 above.These undertakings will not apply to any agreement for the supply of trading check services entered into with a retailer who is a "scheme operator", that is a retailer who is allowed by 210W Provident or any subsidiary company of Provident to sell goods or services direct to a customer in the customer's own home either by accompanying an agent of Provident or any subsidiary company of Provident or by relying on the agent to make the sake.